Free Mode VS Charging Mode, Which Is More Profitable?

With the rise of the mobile internet, more and more developers are turning their attention to apple or google's app store. But for these app developers, one of the questions they have to consider is how to make their own apps to make money, whether to take a free strategy and then make money through other channels or directly charge, this is the decision that developers need to make. Usually, when we ask this question, many developers will put the profit strategy to the end or directly respond to the current failure to consider the profit model.

Who pays more: users or advertisers

when it comes to users, whether it's taking the app itself, subscription fees, or in-app billing mode, most android and ios users are resisting charges. So many developers of smartphone and tablet apps prefer to use the ad model to make money. On the other hand, advertisers are more willing to pay developers, not users. Just like developers, advertisers also need to bring their products to market quickly.

The best solution: adopt multiple profit strategies

often, when we come across a vast majority of users who are price-sensitive, tend to be free, and hardly buy, there are still a small number of users who choose a payment model for their favorite apps to avoid advertising harassment.

So during the development process, developers can choose to develop different versions of the app for different types of users: free and paid. This model is very popular in the publishing industry, like the british guardian has released an advertising free version of android and a non-advertising iphone paid version for different users. Similarly, echofon has launched free and paid versions on all platforms.

In short, when you build a new app, you should investigate some of the ad-based models. There are already a lot of ad models available, so you can compare them to see if they offer cpm or cpc and how much work to do when integrating them into your app.

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